Taragaon Regency Hotels set to clear accumulated losses this year
June 10, 2017 12:20 PM NPT
KATHMANDU, June 9:Taragaon Regency Hotels Ltd, which operates Hyatt Regency Kathmandu, will be in a position to pay dividend to shareholders for the first time in its nearly 25 years of operation in the current fiscal year.
The unaudited financial report of the hotel published recently shows that the hotel has profited Rs 250 million in the third quarter of the current fiscal year, which is sufficient to clear accumulated loss which stands at around Rs 140 million.
Taragaon Regency Hotels Limited was established in 1991 with aim of promoting country's culture and bring more tourists to the country. The Ministry of Culture, Tourism and Civil Aviation has invested in the hotel through Taragaon Bikas Samiti.
Though the hotel's profits have been increasing in recent years, the hotel has been using the profit to clear its accumulated losses. The hotel had profited Rs 136.7 million in the last fiscal year.
Officials of Taragaon Bikas Samiti say they were encouraged by the hotel's financial results. They also said that the shareholders were hopeful of getting some dividends in the current fiscal year.
Taragaon Bikas Samiti has provided 150 ropani and other assets worth Rs 30 million to the hotel.
Shareholders have not got any returns from the hotel since its establishment as it had always reported loss. The hotel's shares having face value of Rs 100 was traded at Rs 266 per share in Nepal Stock Exchange (Nepse) on Thursday.
Narad Luintel, president of Taragaon Bikas Samiti, said that the government has not any returns on its investment in the hotel. “We have not got any returns in the last twenty four years. Leave alone getting returns, our shares in the hotel has shrunk to 9 percent from the initial 40 percent,” Luintel said.